Understanding Pooled Special Needs Trusts
Consumers have access to many financial planning and investing solutions, including retirement plans, mutual funds, sophisticated alternative investments, annuities, college savings programs, and a wide variety of banking products.
Now, suppose you are one of the 43 million people (one in every seven) in the US with a disability.
In that case, the range of products tailored to your specific needs is much narrower and includes 1) special needs trusts and 2) ABLE tax-advantaged savings accounts. Each of these can be an essential component of a financial plan.
Big picture, both solutions protect access to disability and other benefit programs AND ensure availability of financial resources. People with assets or income over certain limits can risk losing access to benefits, something to be avoided given the 28% increase in the cost of living for people with a disability.
All special needs trusts have certain things in common; a trust document establishing the trust, a trustee who makes decisions about investing and using the money in the trust for benefit of the beneficiary, and assets in the trust. There is, of course, more than one way to put these pieces together to accomplish specific objectives.
Pooled Special Needs Trusts (PSNTs)
A pooled special needs trust works much like a company or nonprofit retirement savings plan. Each person has their own trust account with their own money, and all the funds are invested together. Only nonprofit organizations can administer pooled special needs trusts.
The nonprofit organization operates as the lead fiduciary and decision-maker for each person who has an account in the trust and can provide specialized, continuous administration over long periods. PSNTs often offer other services, supporting family members and friends as well as beneficiaries. While setup fees and account minimums for PSNTs vary, they are generally lower than the costs of establishing an individual trust, making this vital tool accessible to many people.
43 | Million people have a disability 1 |
1:7 | That’s one in seven people |
1% | Of financial advisors are certified in special needs financial planning |
$4B | In beneficiary assets administered by PSNTs 2 |
105 | Organizations offer national or regional PSNT programs |
28% | Increase in cost of living with a disability 3 |
2 SNFSi, Includes Disclosed Assets and Estimated Undisclosed Assets 3 2020, National Disability Institute

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